Technavio’s report ‘Confectionery Market in the US 2015-2019’, due for publication this week, valued the market at $34.82 bn in 2014. It expects revenues to rise at a compound annual growth rate (CAGR) of 1.64% to reach $37.77bn by 2019.
Volumes are expected to grow at a 0.77% CAGR over the period to reach 7.54bn pounds by 2019.
Rising purchasing power
“Product innovation and social media presence are some of the major growth drivers,” said the report.
Technavio said improving economic conditions would increase consumer purchasing power for confections in the US.
Low-fat, low calorie
“Consumers have become increasingly health conscious and prefer low-fat and low-calorie products. This has led manufacturers to invest in the development and robust marketing of sugar-free chocolates and candies,” it added.
The research organization found Hershey was the market leader in US confectionery followed by Mars and Mondelēz International.
Technavio warned that rising cocoa costs and US sugar reforms could be barriers to growth.
“One major challenge for manufacturers is the low sales contribution in the sugar and gum segment,” it continued.